Nine Steps To Buying A Home

Congratulations! You have decided to become a homeowner. These nine steps will give you a better idea of what to expect during this exciting process.

1. Figure out your budget
Decide how much you can put towards the down payment. Then, calculate your balanced monthly expenses and savings, so you know how much you can spend on home payments every month.

2. Choose a real estate agent
Ask friends and family members if they know a good realtor. You can also look online. Interview at least 3 agents in person. Explain to them your needs and budget, so he/she can figure out your price range.

3. Get pre-approved
Go to your bank and meet with a loan specialist. Your bank knows your finances and you can get pre-approved without too much documentation. Ask the loan specialist about the differences between a fixed loan and an arm loan.

4. Shop around for a loan
Look online for competitive mortgage rates. Contact at least 3 trustworthy financial entities and ask them for a Good Faith Estimate, a detailed document reflecting all possible fees at closing.

5. Look for your future home
Have fun. Take pictures and notes of the places you see. Remember, stick to your budget. If you find a home over your price range, it might unbalance your budget for months or years to come.

6. Make an offer
You found it! And you are in luck--this is a buyer’s market. You might be able to get your home for less than the asking price. Your realtor will recommend to you how much to offer and negotiation tactics.

7. Hire a property inspector
The seller accepted your offer. Now, it is time to get an expert’s opinion on the actual condition of the home. You can ask your realtor to recommend to you an inspector or hire an independent one.

8. Get homeowners insurance
In order to get final approval on your loan, you must show proof-of-purchase of homeowners insurance.

9. Sign the papers
The big day has arrived. Get ready to sign many documents. Your realtor and/or broker will explain what each document is for. When you are done, the keys will be finally yours.